Economist and Dean of students at the University of Ghana, Professor Godfred Bokpin is advocating for Ghana to include financial literacy training in the country’s education curricula to help citizens make sound financial decisions.
He also believes financial literacy will help Ghanaians make good investing decision without falling for ponzi schemes which are on the rise in the country.
Professor Bokpin blamed the phenomenon which many Ghanaians have lost their investments to, on financial illiteracy.
He argues financial illiteracy is fueling the upsurge of ponzi schemes in the country.
‘’You can have a first degree and still be financially illiterate, financial literacy training is needed right from the JSS level to the tertiary level. Because the idea of information out there is to help you make decisions in order to avoid these schemes. One key assumption that we make in finance is that every financial market participant ought to meet a minimum standard’’, he argued in an interview with 3news.com.
Lotto Doctor
He maintains people do not understand the rudiments of investments saying, “if somebody promises you a return on your investment of 7 percent, 15 percent a month and you agree and put your money into that, you are not an investor, you are a lotto doctor”.
A Ponzi scheme is a financial crime in which the unsuspecting public is tricked to invest in a scheme, with the promise of offering them ridiculous percentages as their investment returns.
In order to build the scheme, the fraudsters pay earlier investors using funds from new investors, which entice more people to join.
Over the years, such schemes in Ghana have promised an investment rate of not less than 50 per cent.
The collapse of ponzi schemes in the country over the last 20 years has not only caused loss of funds but also ruined lives.
He also blamed regulatory forbearance and greed for the situation.
Professor Bokpin is of the view that a more knowledgeable investor will eventually cause an upward revision of returns in the financial market.
Meanwhile, private legal practitioner and managing partner at Bentsi-Enchil, Letsa and Ankomah, Ace Annan Ankomah, has cautioned Ghanaians to be diligent when investing their “hard earned” money.
Read:Ask before investing; Ace Ankomah cautions public against Ponzi schemes
He was speaking at a Media General Economic Dialogue on Thursday, October 18, on the theme ““Investment in the Face of Ponzi Schemes: How Do we Clean the Mess?”.
Mr. Ankomah observed that there is an upsurge of investment schemes that do not conform to the laws of Ghana and the public must be on a lookout.
By Nuong Faalong|3news.com|Ghana